Davis Busted For Inadequate Disclosure

A mutual fund advisor that has outspokenly bemoaned the corporate scandals plaguing Wall Street this year, even put its weight behind the movement to leverage fund assets to pressure public corporations into reform, has been fined by the Securities and Exchange Commission for improper disclosure.

Davis Selected Advisers of New York was fined $10,000 by the SEC this month for failing to tell investors in its Davis Growth Opportunity Fund that the firm had been garnering stellar returns by investing in initial public stock offerings (IPOs). The SEC also ordered the firm, which neither admitted nor denied guilt as part of a settlement, to cease and desist the violation of federal reporting laws. In May, the fund changed its name to the Davis Opportunity Fund.